With Shadwin's help, the goblins arrive in a strange realm with a giant floating statue.
How to Clear Gobliiins Level 16
Have 
Dwayne/Oups pick up the stone in the bottom-left of the
screen. Then have him place it on the X in the grass in the bottom-right of
the screen. Switch to 
Hooter/Ignatius and have him use magic on the
stone, and it will become wider. Have him use magic on it again to turn it into
a ladder.
Next, have Hooter/Ignatius use magic on the leftmost palm tree to
turn it into a pickaxe. Have 
Bobo/Asgard punch the pickaxe to make
it fall. Before you pick it up, you can optionally have
have Dwayne/Oups use the pendulum while standing on the ground
below the floating statue, just slightly left of the statue's center, and the
pendulum will react if you're standing in the correct place.
Then have Dwayne/Oups pick up the pickaxe and use it at the
location where the pendulum reacted. A hole will open.
Keep having him use the pickaxe in that location to widen the hole in the ground and complete the level. Click the flashing "Go" in the hole. Make a note of the code in the bottom-left of the screen ( ), then click anywhere to continue to the next level, The Two-Headed Dragon Cave.